Teladoc Health Inc. (NYSE: TDOC): Stock That Needs Special Handling


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Teladoc Health Inc. (NYSE:TDOC). The institutional investor has increased its shareholding in the Healthcare company by 2.48% to 6.78 million shares with purchase of 0.16 million shares. This fresh investment now brings its stake to 8.35% valued currently at $1.61 billion. In addition, Baillie Gifford & Co. raised its holdings by 0.19 million to 5.97 million shares. And Jennison Associates LLC has lifted its position by 705.33% or 3.22 million shares – to 3.67 million shares.

    With over 3.27 million Teladoc Health Inc. (TDOC) shares trading Friday and a closing price of $208.57 on the day, the dollar volume was approximately $681.03 million. The shares have shown a negative weekly performance of -6.64% and its price on 08/28/20 lost nearly -3.34%. Currently, there are 81.65M common shares owned by the public and among those 80.33M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 27 analysts who have offered their price forecasts for TDOC have a consensus price objective of $235.13. The analysts have set the share’s price value over the next 12 months at a high of $282.00 and a low of $157.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Teladoc Health Inc. stock is 2.10 for the next 12 months. The average price target is 8.95% above its last price level and an upside to the estimated low will see the stock lose -32.85% over that period. But an upside of 26.04% will see the stock hit the forecast high price target while mean target price for the stock is $242.50.

    Insiders at the company have transacted a total of 259 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 147 of these insider trades were purchases, accounting for 764,423 shares. Insider sales of the common stock occurred on 112 occasions, with total insider shares sold totaling 723,622 shares.

    The top 3 mutual fund holders in Teladoc Health Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and American Funds Growth Fund of Ame. Vanguard Total Stock Market Index owns 2.11 million shares of the company’s stock, all valued at over $502.42 million. The company sold 9542.0 shares recently to bring their total holdings to about 2.60% of the shares outstanding. Vanguard Small Cap Index Fund sold 14520.0 shares to see its total holdings shrink to 1.85 million shares valued at over $439.52 million and representing 2.28% of the shares outstanding. American Funds Growth Fund of Ame bought 0.72 million shares to bring its total holdings to over 1.7 million shares at a value of $404.21 million. American Funds Growth Fund of Ame now owns shares totaling to 2.09% of the shares outstanding.

    Shares of Teladoc Health Inc. (NYSE: TDOC) opened at $217.50, up $1.73 from a prior closing price of $215.77. However, the script later closed the day at $208.57, down -3.34%. The company’s stock has a 5-day price change of -6.64% and 20.13% over the past three months. TDOC shares are trading 149.13% year to date (YTD), with the 12-month market performance up to 262.73% higher. It has a 12-month low price of $54.58 and touched a high of $253.00 over the same period. Currently, 3.27 million shares have been traded, compared to an average intraday trading volume of 3.68 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.87%, -1.40%, and 39.98% respectively.

    Institutional ownership of Teladoc Health Inc. (NYSE: TDOC) shares accounts for 93.20% of the company’s 81.65M shares outstanding. Mutual fund holders own 39.67%, while other institutional holders and individual stakeholders account for 51.38% and 21.21% respectively.

    It has a market capitalization of $17.62B and a beta (3y monthly) value of 0.31. The earnings-per-share (ttm) stands at -$1.28. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.48% over the week and 6.28% over the month.

    Analysts forecast that Teladoc Health Inc. (TDOC) will achieve an EPS of -$0.32 for the current quarter, -$0.35 for the next quarter and -$0.79 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.39 while analysts give the company a high EPS estimate of -$0.25. Comparatively, EPS for the current quarter was -$0.28 a year ago. Earnings per share for the fiscal year are expected to increase by 6.70%, and 43.60% over the next financial year. EPS should shrink at an annualized rate of 20.00% over the next five years, compared to 33.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 27 brokerage firm advisors rate Teladoc Health Inc. (TDOC) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 15 Wall Street analysts polled rate the stock as a buy, while 11 of the 27 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the TDOC, a number of firms have released research notes about the stock. Credit Suisse stated their Outperform rating for the stock in a research note on August 17, 2020, with the firm’s price target at $225-$249. Citigroup coverage for the Teladoc Health Inc. (TDOC) stock in a research note released on July 14, 2020 offered a Buy rating with a price target of $275. Argus was of a view on July 13, 2020 that the stock is Buy, while Stephens gave the stock Overweight rating on July 07, 2020, issuing a price target of $250. KeyBanc Capital Markets on their part issued Overweight rating on April 30, 2020.


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